stock option

noun

1
: an option contract involving stock
2
: a right granted by a corporation to officers or employees as a form of compensation that allows purchase of corporate stock at a fixed price usually within a specified period

Examples of stock option in a Sentence

Recent Examples on the Web
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That doesn’t include her stock options and a bonus tied to the company’s IPO price. Emma Hinchliffe, Fortune, 9 Feb. 2026 The actress has already been paid $1 million and stock options as part of a deal agreed in 2022. Bloomberg, Oc Register, 6 Feb. 2026 Since the 1990s, company boards have shifted away from stock options, which incentivize short-term performance, with stock awards, which boards argue are driven by longer-term incentives. Robert Frank,devan Burris, CNBC, 24 Jan. 2026 Four days later, Musk became the first person ever worth $700 billion, after the Delaware Supreme Court overturned a lower court ruling that had voided an award of Tesla stock options now worth $126 billion to Musk. Matt Durot, Forbes.com, 17 Jan. 2026 See All Example Sentences for stock option

Word History

First Known Use

1877, in the meaning defined at sense 1

Time Traveler
The first known use of stock option was in 1877

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Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 17 Feb. 2026.

Legal Definition

stock option

see option sense 3

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